Benefits of Hiring a Financial Advisor

It can be easy to fall into the trap of thinking that you don’t need help from anyone when it comes to your finances. After all, there is that saying, “Too many hands in the pot will spoil the sauce.” However, when it comes to deciding whether to hire a net worth advisor, you shouldn’t have that fear. Financial advisors work to help you achieve your long-term financial goals and make the most of the money you have.

In this guide, we will discuss what exactly a financial advisor does, when you should hire a financial advisor, and the benefits of hiring one.

What Does a Financial Advisor Do?

The financial advisor definition is a person you hire to assist you with financial management. They can help with taxes, increasing return on your investments, planning for the future, and more. Let’s take a closer look at what they can do for you.


Financial advisors not only help you ensure you file your taxes correctly, but they can also help you determine which taxes are unnecessary for you to pay so that you can save more money to invest. They have to know about your financial goals and situations to do this as accurately as possible. They can even advise you on ways to invest to avoid heavy taxes. If you would prefer to do your taxes on your own, they are available to help with any issues that may arise. It is important to note that not all financial advisors are certified in doing taxes, so if that is something you want help with, double-check that your financial advisor is.

Planning for the Future

A big part of what financial advisors do is help you plan for the future. Once they know what financial goals you have, they will create a strategy to help you save money and reach those goals.

  • Big Events or Purchases: If you are planning on spending a good chunk of money on a big event or purchase (such as a wedding, house, car, etc.), financial advisors will look at your current financial situation as well as market predictions and the economy to advise you on the best way to save money for the type of celebration or purchase you want.
  • Education: Like with big events and purchases, financial advisors will aid you in saving money for your children’s education so that they don’t have to worry about paying loans down the road.
  • Retirement: What does a financial advisor do for a 401k plan? All financial advisors can give advice on how to save enough money to maintain your quality of life into retirement. A financial advisor providing net worth advice will be able to help select the appropriate investments for you. Advisors at big Wall street banks will not help advise on 401k investments.
  • Long-term Care Planning: If you start to find daily activities that you are struggling with more and more, such as grocery shopping, housekeeping, or taking medications, it may be a sign that you will need long-term care in the future. The median costs for long-term care in the United States as of 2021 range from $20,280 (for adult day health care) to $108,408 (for a private room in a nursing home facility) per year. If you start to see signs that you will need long-term care (as 7 out of 10 people do), a financial advisor can assist you in making a plan so that these expenses do not fall on your loved ones.
  • Inheritance and Estate Planning: A financial advisor can help you determine which assets will be a part of your inheritance or estate, who your beneficiaries will be, and when your beneficiaries should receive these assets. They will also find a way for your beneficiaries to pay less estate taxes where possible.

Business Investments 

Do you own your own business, or do you plan on starting one? Financial advisors can help you develop a business plan to increase return on investment and decrease unnecessary spending. Because financial advisors have a better understanding of what the market and economy are doing and how they might perform in the future, they can provide you with projections to help you grow your business. They are also there to ensure that you give both your personal and business finances equal attention so that one doesn’t suffer because of the other.

Increasing Long-term Wealth

Not only do financial advisors guide you on saving money, but they will also advise you on how much and where to invest your money to see financial growth. Their suggestions will generally be based on how much money you need to achieve your goals, how soon you need that money, and how long you plan on investing your money.

Life Insurance

Life insurance policies ensure that your loved ones have the means to continue to live the same quality of life once you pass away, especially if your death is unexpected. Some financial advisors can sell you life insurance so that your loved ones are taken care of once you’re gone. In order to maintain a client first business model many financial advisors do not accept any commissions. These advisors partner with a life insurance specialist for their clients’ needs.

Read more  9 Science-Backed Benefits of Using Positive Affirmations

Financial Planner vs Advisor

Because financial advisors do a lot of planning, it may be difficult to tell the difference between them and financial planners. A personal financial planner is a specific type of financial advisor. They assist with: 

  • Creating strategies to save money and invest so that you can meet your financial goals
  • Tax planning
  • Retirement planning
  • Planning your estate
  • Managing investments
  • Saving for future events and purchases

They do not help with any of the following additional tasks that other advisors assist with:

  • Life insurance
  • Real estate
  • Accounting or banking services
  • Short-term trades

If you want someone to help you with all aspects of your financial journey, a financial advisor is a better option. The financial advisors at Delta Wealth Advisors:

  • Utilize an evidence-based investing approach
  • Construct portfolios using proven, risk-based investments
  • Continuously monitor your investments and maintain liquidity when needed
  • Focus on rules-based, low-cost investments
  • Incorporate tax-minimization strategies

What Are the Benefits of Using a Financial Advisor?

There are several benefits to hiring a financial advisor, including reducing the stress of managing your finances on your own and helping you to avoid making emotional decisions when investing. These and other benefits are listed with more detail below.

Creation of Personalized Plans

You have financial goals in mind, but where do you start? A financial advisor can tell you that as well as all the steps that you need to take in your journey to achieve those goals. Financial advisors create personalized plans based on how much money you have and what you are striving towards. If your goals change down the road, your financial advisor will assist you in coming up with a new plan so you don’t feel as though you have to start from scratch.

Finance Management

Managing your finances can be overwhelming, especially when you are working with a lot of money, running your own business, or have made several investments. Hiring a financial advisor allows you to place some of that burden on an expert who better understands your finances, the economy, and your options. Instead of spending hours combing through your finances, searching online for answers to your questions, and projecting what the market will do next, you can hire someone who will do those tasks for you.

Remove Emotion From Investing

It can be easy to fall into the trap of making investments based on what your gut tells you. As soon as the market starts taking a turn for the worse, it can be easy to invest your money someplace else out of fear. However, these instincts don’t always work in your favor, especially if you don’t have a complete understanding on how the market works or what the experts project. Financial advisors know finances and how to make the most of your money. They will look at both your finances and at the market to make sure that your investments are well thought out and will even give advice on where to invest based on what their data says.

Tax Filing Assistance

Taxes get especially complicated if you own a business or have a lot of investments. A financial advisor can file taxes for you or give you guidance if you want to do them on your own to ensure that you do not make any mistakes that you’ll be penalized for later. They will also show you where you can save money when paying for taxes.

Investment Education

Different types of investments affect your finances differently. Below are a few examples:

  • Business Investments: Boosts odds of multiplying your invested capital
  • Real Estate: Offers higher income and more stable pricing in downturns than bonds
  • Capital Markets: Aids in paying for unexpected needs
  • Cash: Helps fund opportunities during recessions

To learn more about the pros and cons of investing in each of these types, Delta Wealth Advisors gives more information here. With help from a financial advisor, you can better understand where you should invest and why so that you get the most for your money. 

The benefits of using a financial advisor sound well and good, but what should you consider when deciding whether to hire one? First is the money.

How Much Money Should You Have Before Hiring a Financial Advisor?

A general rule of thumb is that you should have $100,000 in assets if you plan on hiring a financial advisor. However, this number can range from $50,000-$1,000,000. At Delta Wealth Advisors, we consider high worth individuals anyone who has at least $1,000,000 in assets. However, that does not mean you cannot hire a financial advisor if you do not have that much money. If you’re wondering, “Should I get a financial advisor in my 20s” but do not have $1,000,000, Delta Wealth Advisors still offers a financial advisor to you. We have a Trailblazer Path for High Earners, Not Rich Yet (HENRYs) who have less than $1 million but have a bright future and need help with more than retirement.

“Should I use a financial advisor or do it myself?” you might be asking. Our checklist below provides some guidance on that.

Do I Need a Financial Advisor? Quiz

If you are unsure whether you should hire a financial advisor, go through this checklist for guidance. 

  • You have a complex financial situation. If you own a business, have several investments, or recently received a large inheritance, the odds that you have a complex financial situation is high. If upon looking up guidance online, you still struggle with managing your assets, hiring a financial advisor is in your best interest, especially when tax time rolls around.
  • You are a high net worth individual. If you have at least $1 million in liquid financial assets, then you are typically considered a high net worth individual. At Delta Wealth Advisors, we consider ultra-high net worth individuals anyone with $10,000,000 or more, but we will also work with HENRYs who have the potential to earn that much in liquid assets. 
  • You want to invest more money. If you want a high return on investment, you will want to make sure that you know what your options are and how much you should invest without being either too conservative with your money or investing too much and putting your finances in danger. A financial advisor can help with that.
  • You make emotional decisions with your assets. Let data drive your decisions instead of your emotions. In the long-run, data is more reliable than emotions, after all. Hire a financial advisor to give you the data you need to make responsible decisions.
  • You are close to retirement. If you want to sustain your current quality of life into retirement, you will need to make sure you have enough money saved to do so. A financial advisor can help with that.

Read more  What’s a Key Benefit of Responsive Display Ads?

If you answered yes to even one of these questions, hiring a financial advisor is probably a good idea for you.

Looking for “Financial Advisors Near Me”? Go With Delta Wealth Advisors

If, after taking our financial advisor quiz, you have determined that you should hire a financial advisor, then choose one from Delta Wealth Advisors. Our team of skilled professionals will save you time and manage your money right. We bill based on net worth so that conflicts of interest are removed and you can more easily achieve your financial goals. Our advice extends beyond stocks and bonds to give you answers on anything related to your net worth. Ready to set up a call to find out if we’re right for you? Schedule one today.
— Update: 10-02-2023 — found an additional article The Pros and Cons of Hiring a Financial Advisor from the website for the keyword benefits of hiring a financial advisor.

Whether hiring a financial advisor, or handling your own investments, you want to know what is happening with your money.

I’ve spoken to many throughout the years, but have yet to connect with one that has shown me a significant value proposition. However, if you decide that it may be the better option? There are a few pros and cons to consider.

Related: Are You Willing and Able to Retire at Age 55? Let’s Run the Numbers

Pro: time

Hiring an advisor can save you a significant amount of time spent on research and studying different investment strategies. This is where you must weigh out the opportunity cost. Consider your bandwidth. Depending on the type of investment strategy you would like to take, managing a portfolio regularly requires your attention – especially around tax season.

Pro: strategy

An advisor may be more equipped to choose the most advantageous investment strategy for your long-term goals. This is important to consider for investors, over the age of 50, that are considering different accounts for retirement or tax purposes. When it comes to “wealth management”? It may be wise to seek proper counsel for more complex investing scenarios.

Pro: peace of mind

The most noteworthy advantage: You hand off the responsibility to a trusted source and remove yourself from the daily pressure of big decision-making. A significant challenge that many investors have early in their journeys is emotional investing. By removing yourself, you remove your feelings and limit the possibility of hasty buying and selling as the market fluctuates. If you do choose to manage your own portfolio, it would be wise to instead focus on financial coaching.
Related: A Monk-Turned-Financial Advisor on Mindful Money Management

Con: peace of mind

This one is a simultaneous pro plus con. When you hand off your resources to another party, you also lose the comfort of knowing why your money is fluctuating. Even with a trusted advisor, there is no “100% guaranteed success” in the stock market. You are still the one who has to bear great losses. Your advisor? Less so. You’ll want to know enough to monitor any financial advisor you are working with. True peace of mind will only come with more education.

Con: conflict of interest

When you are shopping for an advisor? Ask tough questions. Know the respective candidate’s net worth and personal financial track record. Before you let someone manage your resources, it’s a good idea to understand how they manage their own.

Con: costs and fees

If you are only investing a minor sum, you may find that even a small financial advisor fee will eat up a larger percentage of your returns since smaller accounts typically have higher fees. Advisor fees typically decrease the more funds you invest. You may also find that many of them offer reasonable fees given the competitiveness that has increased in this field, both online and off. Ask yourself: W

When negotiating,incentivize them to lower your fees as you increase your investments, or bring in friends to work with them as well.

If you have not yet made a decision and wish to connect with me directly, connect through my website via The Hustle Made Me Do It! or DM me on social media.
Related: Want to Become a Millionaire? Follow Warren Buffett’s 4 Rules.

— Update: 10-02-2023 — found an additional article 9 Advantages of Hiring a Financial Advisor from the website for the keyword benefits of hiring a financial advisor.

Did you know that the financial planning and advisory market is worth $59.2 billion in the US alone?

This is not surprising as more people are genuinely concerned about their financial future. However, many people still don’t realize the importance of hiring a financial advisor.

Handling financial matters can get complicated, especially as you approach important life decisions. It requires a unique set of expertise you can only get from a Certified Financial Planner™.

But, it’s normal to be skeptical about hiring one. After all, why hire one when you are doing just fine, currently?

Here’s a list of some of the unbeatable benefits of hiring a financial advisor.

1. Undeniable Expertise

What do you do when you’re feeling unwell? Chances are, you drop everything and schedule an appointment with your doctor. That’s because you don’t have your doctor’s expertise.

The same should be the case in all matters relating to financial planning. Sure, there are many resources online detailing how to tackle planning by yourself. But most financial moves need an expert’s guidance.

Read more  Is Tomato a Fruit or a Vegetable?

Financial advisors, especially those who are Certified Financial Planners™, have unique experience and understand how all of the financial pieces fit together. So they’re in a better position to advise you on financial decisions big and small.

2. Reduced Stress

Let’s face it; financial planning is not the easiest or most enjoyable task. Chances are, even thinking about it causes a slight headache.

Defining your financial goals is just the first step. Working to meet these goals can be challenging and stressful. There’s more to financial planning than saving money each month.

You have to deal with taxes, financial markets, and the law, all of which can be tasking. These are all things your financial advisor can tackle. So, hire one if you’re tired of having to do all these things on top of holding down a job.

3. It’s a Learning Experience

You’re bound to pick up vital skills when working with a professional advisor. Most advisors meet with their clients to discuss investment opportunities. A good financial planner offers a wide range of advice beyond your portfolio. That could include discussions around estate planning, insurance, social security, and more.

All you need to do is ask as many questions as possible during these meetings. Learn why they recommend specific opportunities for you and disregard others. Feel free to pick their brains about budgeting and any areas where you feel you could use more guidance.

4. It Eliminates Emotions from Investments

Emotional reactions can be costly for an investor. It’s easy to get lost in the fear and greed evoked by the investment market.

You may be tempted to sell your stock in a particular company because you’ve heard some rumors. Or, you may want to sell your property because you’ve received a great offer. While these decisions may seem logical, your financial advisor may hold a different opinion.

Financial advisors make decisions after tremendous research. They are disciplined and will hold out for the best possible outcomes. They can also run through model scenarios to see how a decision today could potentially impact your future goals. That’s why you need a financial advisor to guide your every move.

5. Promotes Coordination

Hiring a financial advisor will prove invaluable because they’re good coordinators. Wealth management requires the effective coordination of various facets of your life.

A financial planner will work with other individuals in your life to promote your best interests. That’ll involve coordinating with your lawyers, estate planners, and business managers. By acting as “quarterback”, your financial advisor can be sure your financial plan is comprehensive and cohesive. 

6. Helps With Debt Control

Let’s face it; loans are a normal part of life. In fact, Gen X and baby boomers owe an average of $140,643 and $97,290, respectively.

But most people don’t know how to manage their debts. It’s not always as easy as making monthly payments. Sometimes, debt consolidation may be your best option to reduce costs.

That’s why it’s essential to consider hiring a financial advisor. Your advisor will develop a strategy that minimizes costs and maximizes your benefits. By getting your finances in order and a budget in place, it’ll also help ensure you make timely repayments to reduce loan-related fees.

This secures your financial future as it increases the chances of loan approvals. Lenders consider your past repayment history when deciding whether to approve your loans.

7. You Enjoy a Customized Financial Strategy

Contrary to popular belief, financial planning is not a one-size-fits-all process. Saving is just one piece of the financial planning puzzle.

Many factors determine the best approach for different individuals. Some of these include your financial goals, your timeline for these goals, and your income.

Sometimes, saving could be your best option, but other times, your answer may be investing. It’s up to your financial advisor to help you decide on the best approach depending on your needs. So, hire a financial advisor for a strategy that’ll help meet your financial goals.

8. Helps Choose the Best Investment Opportunities

There are thousands of investment opportunities. But, only a few of these opportunities are the right fit for you.

Identifying the best opportunities for you is a complex and daunting task. It requires a lot of research and market knowledge. That’s where a financial advisor comes in.

After analyzing your financial goals and risk appetite, they’ll recommend investment opportunities that will help you reach your goals. They can help find the balance between risk and return on your investments. They can also act as a sounding board when new investment opportunities peak your interest.

Creating appropriately diverse portfolios requires a considerable amount of time and expertise. So, it’d be best if you were to hire a financial advisor to help you rather than go at it by yourself.

It’s even more meaningful for you to ensure your financial advisor is a fiduciary. [Insert link to the RIA difference page] This will give you peace of mind knowing that suggestions and guidance are based solely on your best interests and not on the what would be more lucrative for your advisor.

9. Helps Prepare for Life Transitions

You pass through various phases of life as you grow. Your finances play a crucial role in how comfortable you are in these phases. It’s vital to have your finances in order as you navigate through life.

A financial advisor will help you prepare for the expected transitions like retirement. They’ll also help prepare for the unexpected ones, like divorce. It’s their job to prepare your financies for unpredictable changes and plan accordingly.

Get Value by Hiring a Financial Advisor

Have you decided to hire a financial advisor? The next step is finding the right professional. 

A financial advisor will help with financial planning, investment decisions, and wealth management. An advisor who is a fiduciary will make sure all decisions are made in your best interest. It’s never too early or too late for professional financial planning.

Contact us today to learn more about our financial planning services. 


Recommended For You

About the Author: Tung Chi